Coastal and Industry Partners Launch New Digital Services Company

Joe Mecca

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Published on 05-09-2017

Categories: Coastal News

constellation logo

Raleigh’s Coastal Credit Union and eight other partners have announced the formation of Constellation Digital Partners, LLC, a credit union service organization (CUSO), designed to revolutionize the way credit unions develop and integrate new online services.

Constellation will be based in Raleigh, and will initially be housed at Coastal’s headquarters.   Coastal’s Chief Information Officer, Kris Kovacs, will serve as Constellation’s interim CEO. Kovacs says that the organization plans to hire up to 25 employees within the next 5 years.

The company’s initial product will be a groundbreaking new Digital Services Platform.  This will be a first of its kind, cloud-based, financial services marketplace and associated app that will allow credit unions and members to customize their experience by choosing which services to use inside of a secure digital banking system.

Constellation was born out of the need for credit unions to remain relevant by being nimble in adopting the latest, greatest digital banking technology, and by developing new, convenient services to deliver to members across the industry at a rapid pace. Traditionally, online and mobile banking integration is often painfully slow and clunky, and adding new services to existing systems is expensive. Constellation provides a platform that solves this problem with an “Integrate Once; Innovate Often” model that will allow credit unions to keep up with, and even lead in, the latest fintech advancements.

The Digital Services Platform works by integrating directly with credit unions’ core systems, and then credit unions and their service providers can create an endless number of services that integrate to the platform. It allows for a greater variety of services, with much faster rollout times. Essentially, once a service is available to the digital service platform, it becomes available to all credit unions that are Constellation clients.

“Credit unions have been struggling to provide next-generation services and it’s a disconnect both current and potential members have noticed,” said Kovacs. “Today’s fast-paced digital age calls for new services and we have the answer. Constellation redefines what credit unions offer. It means credit unions finally have the freedom to not only survive, but thrive; to not only compete, but win. We vet the services first, so members can trust they are the best of the best.”

The company is off to a strong start, already securing a patent for the technology behind the digital service platform. In April, it won first place in the National Association of Credit Union Service Organizations’ Next Big Idea competition.

The Digital Services Platform is scheduled to take about two and a half years to fully develop; the first version of the product is slated to launch among partners in the fourth fiscal quarter of this year.  In the meantime, the company is working to secure additional credit union investors, and begin lining up service providers and future clients.


 

About Coastal: 

Coastal Credit Union is a not-for-profit, member-owned, financial cooperative, offering a full range of financial products and services. Coastal was chartered on August 31, 1967 with the mission of fostering the credit union philosophy of “people helping people.”  Today, with $2.9 billion in assets, Coastal serves 230,000 members from 1,600 business partners and is among the leading financial institutions in North Carolina.  Coastal operates 22 branches in the Triangle market and serves members in all 50 states through a network of 5,000 shared branches, 80,000 surcharge-free ATMs, mobile banking featuring mobile check deposit, and a robust offering of online services at www.COASTAL24.com.  Media Contact: Joe Mecca, 919-420-8044, jmecca@coastalfcu.org

About Constellation Digital Partners, LLC:

Coastal Credit Union and eight partners are developing a secure and flexible cloud-based marketplace that enables upper to mid-tier credit unions and innovative app developers to provide safe, reliable, and next-generation electronic financial service experiences while giving the freedom to compete, innovate, and thrive in the financial services industry. Constellation will redefine what credit unions offer, delivering electronic financial services in a way that enables them to place members at the center of their business strategy. Visit www.constellation.coop to learn more. Media contact: Liza Deckelbaum, 919-645-0782, lizad@thestoneagency.com

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